If you’re still on the fence about entering the Reverse Mortgage market, this recent news may spur you into taking action and joining the “hottest” mortgage niche ever enacted
On January 1, 2009 the new Purchase Reverse Mortgage became effective and FHA began to insure reverse mortgage purchase loans. Lenders are already taking purchase applications and loans are scheduled for closing.
This new program is designed to allow seniors age 62 or older, to purchase a new principal residence and obtain a reverse mortgage using a single transaction by eliminating the need for a second closing. The program allows the Senior to put the least amount down on their new home purchase and have no mortgage payments for the rest of their life
The program was designed to allow senior homeowners to relocate to other geographical areas for family reasons, or just downsize to homes that more closely meet their needs.
As with any Reverse Mortgage, there is no income or credit criteria required to qualify. They must be able to maintain the new home and pay for all tax and insurance costs. The down payment requirements are based on age and, the older the senior, the less down payment that is required.
The eligible property types Include…
Single Family Residence,
Condominiums,
Townhouses,
2-4 Unit Multi Family, and
Manufactured homes.
Interestingly, Seniors have the option of making payments on the Reverse Mortgage to get a tax deduction and preserve their equity, after the program is in place. In other words, they can treat it just like a regular mortgage and make regular monthly payments if they so choose. If they would rather keep their money in their pocket they can do that as well.
All Reverse Mortgage loans are cushioned against declining home values by limiting the principal amount to a percentage of the home’s equity based on the borrower’s age.
No doubt about it…a new hot niche is emerging among all the mortgage market doom and gloom you’ve been experiencing as of late. The really great thing about this niche is that you don’t have to worry about any of the following…
1. Locating Mortgage Lenders that actually want to lend!
2. Declining property values that can destroy your pipeline!
3. Credit issues that will hamper your Mortgage Business!
4. Loan Officer credibility problems due to the perception that we’re totally to blame for our current mortgage/credit crisis!
5. Begging for loans…Ya know…the entire Loan Modification process!
If you need a call to action, here it is…
Wake up folks! You need to put yourself in a position to originate Reverse Mortgages immediately, if not sooner. Don’t miss this super opportunity! Get in on the ground floor! Just do it now!
Tom Domin is a founder of The Reverse Mortgage Mentor membership training site. Put your mortgage production back-on-track with the very best Reverse Mortgage marketing training. Sign-up for our $1.00 ten (10) day trial membership at http://www.TheReverseMortgageMentor.com/
